HR3484-119

What This Bill Does

The Business Owners Protection Act rolls back unused Securities and Exchange Commission authority from Dodd-Frank and related securities-law provisions. It terminates any SEC authority established under Dodd-Frank that gives the Commission discretion to impose a requirement on private entities if the SEC had not issued a notice of proposed rulemaking or guidance document for that authority before January 1, 2025. Within 180 days, the SEC must submit to Congress and publish a public list of each terminated authority. The reported text also repeals section 15(o) of the Securities Exchange Act and the related section 921(a) authority concerning mandatory predispute arbitration. It removes certain fiduciary-duty-related authority in Exchange Act section 15 and Investment Advisers Act section 211(h), and repeals a second Exchange Act subsection (k) relating to standards of conduct.

Who Benefits and How

Broker-dealers benefit because unused SEC authority to restrict mandatory predispute arbitration is repealed. Investment advisers benefit from removal of certain fiduciary-duty-related authority and reduced risk of future SEC conduct rules under unused Dodd-Frank authority. Financial services firms subject to SEC oversight benefit from a cutoff for dormant discretionary requirements that had no proposed rule or guidance before January 1, 2025. Securities industry compliance officers benefit from a public list of terminated authorities. Business owners using financial advisers may benefit from less regulatory uncertainty around future SEC rules.

Who Bears the Burden and How

The Securities and Exchange Commission must identify terminated authorities, report them to Congress, publish the list, and update internal rulemaking plans. Retail investors subject to mandatory arbitration lose a potential future SEC pathway to restrict or condition arbitration clauses. Investor advocacy organizations bear a policy burden because the bill narrows SEC investor-protection authority before future rulemaking. SEC enforcement and policy staff must determine which Dodd-Frank authorities are covered by the termination rule. Congressional oversight committees must review the SEC list and any effects of repealed authorities.

Key Provisions

• Terminates unused Dodd-Frank SEC authorities that could impose private-entity requirements without pre-2025 proposed rules or guidance.
• Requires the SEC to submit to Congress and publish a list of terminated authorities within 180 days.
• Repeals SEC authority related to restricting mandatory predispute arbitration.
• Removes specified fiduciary-duty-related authority in the Exchange Act and Investment Advisers Act.
• Repeals a second Exchange Act subsection related to standards of conduct.